Q3 2016 Finance Industry Trends

Q3 2016 KEY HIGHLIGHTS

• The largest transaction in Q3 2016 was CBOE Holdings’ announced acquisition of BATS Global Markets for $3.6 billion. Of note, three of the industry’s top five deals by value year-to-date involved major exchange operators.
• The highest value Payments deal in Q3 2016 was MasterCard Incorporated’s announced acquisition of VocaLink, which develops and operates payments infrastructure solutions, for $924 million.

Q3 2016 KEY TRENDS

• Total transaction volume in the 1st 3 Quarters of 2016 increased by seven percent over the 1st 3 Quarters of 2015, from 321 to 342.
• Total transaction value in the 1st 3 Quarters of 2016 rose by seven percent over the 1st 3 Quarters of 2015, from $42 billion to $44.9 billion.

MULTIPLES & VALUE TRENDS

• The median revenue multiple on a year-over-year basis declined from 3.2x to 2.2x.
• The median EBITDA multiple on a year-over-year basis decreased from 15.2x to 12.1x.

TOP TEN DEALS THROUGH Q3 2016

The top ten deals by value have seen three new additions since our half year report, including two in the Capital Markets segment. This consisted of the aforementioned BATS Global Markets deal and E*TRADE Financial Corporation’s acquisition of OptionsHouse for $725 million.

These three transactions, with an aggregate value of $5.2 billion, represented 12 percent of transaction value in the 1st 3 Quarters of 2016 and 70 percent of Q3 2016 transaction value.